chapter 7 decision-making

  1. definition of decision-making
  • the process of identifying and selecting a course of action to solve a specific problem
  1. authority in decision-making

2 factors

  • scope of the decision
  • management level
  1. type of decisions

programmed decisions

non-programmed decisions

  1. decision-making models

bounded rationality model

emotional model

rational model

  1. conditions of decision-making

risk conditions

uncertainty conditions

certainty conditions

  1. decision-making process

develop alternatives

analyze alternatives

identify the problem

select the best alternative

implement the decision

evaluate the decision

take follow-up action

  1. decision-making technique

4 major decision style

behavioural style

conceptual style

analytical style

directive style

  1. advantages of decision-making

able to develop many effective alternatives

degree of involvement

able to collect more information and diversity of views

greater acceptability

  1. disadvantages of decision-making

minority domination

pressure to follow a decision

takes longer time

unclear responsibilities

  1. techniques to improve group decision-making

nominal group technique (NGT)

delphi technique

brainstorming

electronic meeting system(EMS)